Hsbc Holdings PLC Sells 241,137 Shares of MP Materials Corp. $MP

Key Points

• Hsbc Holdings PLC cut its MP Materials stake by 58.3% in the fourth quarter, selling 241,137 shares and ending with 172,729 shares worth about $8.7 million.
• MP Materials reported better-than-expected quarterly results, posting $0.03 EPS versus the expected loss and revenue of $90.65 million, up 49.1% year over year.
• Analysts remain largely bullish on MP, with a consensus rating of “Buy” and an average price target of $80.14, even as some insiders sold shares during the quarter.

Hsbc Holdings PLC decreased its stake in shares of MP Materials Corp. (NYSE:MP - Free Report) by 58.3% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 172,729 shares of the company's stock after selling 241,137 shares during the period. Hsbc Holdings PLC owned about 0.10% of MP Materials worth $8,734,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of MP. Royal Bank of Canada lifted its stake in MP Materials by 26.5% during the 1st quarter. Royal Bank of Canada now owns 234,185 shares of the company's stock valued at $5,716,000 after acquiring an additional 49,052 shares in the last quarter. AQR Capital Management LLC purchased a new position in MP Materials during the 1st quarter worth $215,000. Integrated Wealth Concepts LLC bought a new stake in shares of MP Materials in the 1st quarter worth $219,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of MP Materials by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,793 shares of the company's stock worth $265,000 after acquiring an additional 479 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in shares of MP Materials by 36.0% in the first quarter. Goldman Sachs Group Inc. now owns 193,943 shares of the company's stock valued at $4,734,000 after purchasing an additional 51,348 shares during the last quarter. Institutional investors own 52.55% of the company's stock.

MP Materials Price Performance

MP opened at $53.95 on Friday. The firm has a market cap of $9.60 billion, a P/E ratio of -128.44 and a beta of 1.86. The firm has a 50-day moving average of $62.38 and a 200 day moving average of $59.55. The company has a debt-to-equity ratio of 0.47, a quick ratio of 6.58 and a current ratio of 7.18. MP Materials Corp. has a fifty-two week low of $29.58 and a fifty-two week high of $100.25.

MP Materials (NYSE:MP - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.03 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.04. The business had revenue of $90.65 million for the quarter, compared to analyst estimates of $74.82 million. MP Materials had a negative net margin of 28.00% and a negative return on equity of 2.27%. The company's revenue for the quarter was up 49.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.12) earnings per share. On average, research analysts expect that MP Materials Corp. will post -0.04 EPS for the current year.

Analyst Ratings Changes

A number of research analysts recently weighed in on MP shares. Morgan Stanley raised their price target on shares of MP Materials from $62.00 to $70.00 and gave the company an "overweight" rating in a research report on Monday, May 11th. Needham & Company LLC began coverage on shares of MP Materials in a research note on Monday, June 1st. They issued a "buy" rating and a $81.00 price objective for the company. Weiss Ratings reissued a "sell (d-)" rating on shares of MP Materials in a research report on Tuesday, April 21st. Wedbush boosted their target price on MP Materials from $90.00 to $100.00 and gave the stock an "outperform" rating in a research note on Friday, May 8th. Finally, Canaccord Genuity Group set a $82.00 target price on MP Materials in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $80.14.

Insider Transactions at MP Materials

In related news, CFO Ryan Corbett sold 20,000 shares of MP Materials stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $75.00, for a total value of $1,500,000.00. Following the sale, the chief financial officer owned 109,017 shares of the company's stock, valued at approximately $8,176,275. The trade was a 15.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO James H. Litinsky sold 185,167 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $69.14, for a total value of $12,802,446.38. Following the completion of the transaction, the chief executive officer owned 11,620,798 shares in the company, valued at approximately $803,461,973.72. The trade was a 1.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,205,167 shares of company stock worth $79,371,654 in the last quarter. Insiders own 8.20% of the company's stock.

MP Materials Company Profile

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.

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